Bridges Weekly Trade News Digest • Volume 8 • Number 7 • 26th February 2004
CTD: Declining Commodity Prices In The Spotlight
The WTO Committee on Trade and Development (CTD) held its 48th session on 18 February 2004, chaired by newly-elected Ambassador Trevor Clarke (Barbados). Discussions in the Committee focused mainly on the issue of declining commodity prices, which had been introduced by Kenya. The meeting formally elected Ambassador Clarke as the Committee’s new chair for meetings in regular and dedicated sessions (small economies) and Ambassador Ian de Jong (Netherlands) as chair of the Sub-Committee on Least-Developed Countries.
The problem of declining commodity prices
Kenya stressed the importance of addressing the decline in commodity prices, and said it would submit a paper before the next CTD session outlining its expectations of CTD action on the issue. The paper reportedly will elaborate on and add detail to a May 2003 submission by Kenya, Uganda and Tanzania (WT/COMTD/W/113, accessible at http://docsonline.wto.org), highlighting the need for urgent action to deal with the crisis caused by the long -term price decline of primary commodities. Most developing countries, including India, Pakistan and Brazil, supported Kenya’s intervention. According to one delegate, Kenya said the issue of declining terms of trade had many dimensions, including those related to tariff peaks, technology transfer and agricultural subsidies — all of which were under the purview of various WTO negotiating bodies.
Kenya suggested that substantive discussions on the various aspects of the commodities issue could be held in CTD special sessions, or transmitted for examination in other WTO bodies. Pakistan cautioned against diffusing the issue within various bodies. Recognising the Pakistani concern, many speakers suggested inviting relevant experts from other organisations to join the discussions. An African delegate stated that aspects of the commodities issue should be discussed in other WTO bodies, with a report could to the CTD. The US reportedly cautioned against having the WTO handle non-trade issues, and added that the problem was market-related — pointing to issues such as competitiveness, horizontal and vertical diversification and investment — rather than a question of supply management. The US felt the commodity price decline needed to be handled by ‘market-based’ instruments such as commodity-risk derivatives. The EC highlighted the importance of damage verification in countries affected by declining commodity prices, and greater access to finance and capacity building.
Uganda and Tanzania also intervened at the meeting. Referring to calls for ‘diversification’ made by some WTO Members, they reportedly remarked that the same degree of emphasis was not being given to removing the various market access barriers that developing countries faced.
Chair requests submissions on para. 51 by next session
Discussions on para. 51 of the Doha Ministerial Declaration (on reflecting sustainable development in the negotiations) did not make much headway within the CTD. According to a trade source, the CTD has heard reports from the groups negotiating non-agricultural market access, agriculture and services. Reportedly, the ‘development’ aspects in these reports were mainly focused on developing country proposals relating to market access and special and differential treatment. At the meeting, the CTD was briefed on the development aspects of the review of the Dispute Settlement Understanding. The Negotiating Group on Rules and the Special Session of the Committee on Trade and Environment have yet to brief the CTD. Chair Clarke asked Members to submit new ideas on how to operationalise para. 51 by the next CTD meeting.
Para 51 of the Doha Ministerial Declaration states that, "The Committee on Trade and Development and the Committee on Trade and Environment shall, within their respective mandates, each act as a forum to identify and debate developmental and environmental aspects of the negotiations, in order to help achieve the objective of having sustainable development appropriately reflected".
EC database service to help developing country exporters
The EC informed Members of an online service — Expanding Exports Helpdesk, available at http://export-help.cec.eu.int — created to advice and assist developing countries seeking to export to EC markets(see also BRIDGES Weekly, 4 February 2004).
Discussions on the work programme for 2004 began, and the Chair asked Members for additional proposals. Members are also set to discuss if, and how, to continue work on e-commerce at the next CTD meeting.
The Committee agreed on regional trade policy courses as part of the 2004 Technical Assistance Plan (WT/COMTD/W/123). The trade policy course for French-speaking Africa will be held at University Mohammed V in Rabat, Morocco.
The next CTD meeting is scheduled for 11 May, and a meeting of the Sub-committee on Least-Developed Countries for 9 March.
ICTSD reporting.